A stock's holding period return represents:

a. the return from a stock relative to the return from a specific portfolio.

b. the total return earned over a specific period through buying and selling an asset.

c. the total dividend return received over the time a stock is held.

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3 November, 01:55

A stock's holding period return represents:

a. the return from a stock relative to the return from a specific portfolio.

b. the total return earned over a specific period through buying and selling an asset.

c. the total dividend return received over the time a stock is held.

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Answers (1)

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Shadow · Answer 1

b. the total return earned over a specific period through buying and selling an asset

Explanation:

Holding period return (HPR) is the return an investor receives for the period he/she holds the stock. For example if an investor buys a company's stock and holds it for a year then sells it after receiving the dividend, the holding period will be 1 year, while the holding period return will be the percentage rate of return earned within that 1 year, making choice B correct.

A stock's holding period return represents:a. the return from a stock relative to the return from a specific portfolio.b. the total return earned over a specific period through buying and selling an asset.c. the total dividend return received over the time a stock is held.

A stock's holding period return represents:

a. the return from a stock relative to the return from a specific portfolio.

b. the total return earned over a specific period through buying and selling an asset.

c. the total dividend return received over the time a stock is held.